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WorksheetsUnit 4 - Quiz 6
Total questions: 10
Worksheet time: 5mins
At breakeven point, the fixed cost is always
more than the contribution margin
less than the contribution margin
equals to the contribution margin
To lower the breakeven point, you must _______ fixed cost and _______ the contribution margin.
increase, decrease
decrease, increase
increase, increase
The margin of safety is the key concept of CVP analysis. Therefore, it is
difference between actual sales and contribution margin
difference between contribution margin and breakeven sales
difference between actual sales and breakeven sales
A company will incur losses if their sales gets _______ the breakeven.
equal with
higher than
lower than
Margin of safety ratio is derived by dividing the margin of safety to ______.
contribution margin
variable cost
sales
The ______ the margin of safety, the higher the actual sales compared to breakeven sales.
higher
lower
constant
There is a/an ________ relationship between fixed cost and contribution margin in order to lower the breakeven point.
direct
inverse
equal
It is the amount that sales may decline but will not incur losses.
Variable cost ratio
Margin of safety
Breakeven sales
To compute the operating leverage, ______ must be divided to the net income of a firm.
sales
variable cost
contribution margin
If the fixed has a fixed cost amounting to ₱25, 000, variable cost of ₱28,000 and Sales of ₱45,000, how much is the contribution margin?
₱15,000
₱16,000
₱17,000
